Somber Prospects for Madagascar’s Economy

Submitted by Noro Andriamihaja
On Tue, 02/02/2010

Madagascar’s economy has been in recession since the beginning of the political crisis in March 2009, and prospects for 2010 don’t look too promising. The prudent fiscal policy adopted by the Government will be increasingly difficult to sustain in 2010. Key financial indicators continue to be vulnerable to policy shifts and shocks, and export competitiveness losses have begun to create pressures on the balance of payments. All in all, a major turnaround in the downward trend of economic activities is unlikely to occur in 2010.